Debasis Mohapatra
Bengaluru, 1 July 2025
Tepid iron ore futures price in key commodity exchanges point towards a dim pricing environment for Indian ore in coming weeks. Both DCE (China’s Dalian Commodity Exchange) & SGX (Singapore Exchange) iron ore contracts have corrected in recent days with some stability seen on Monday.
DCE Iron Ore Sep ’25 future contract ended 0.56% higher at 718 yuan ($100) on Monday. Though prices have recovered in the last three trading sessions, it remains a way below its 52-high mark of 807.5 yuan ($112.7).
According to experts, steel demand in China remains soft with no visible impact of recently announced stimulus on demand yet. Moreover, inventory level are not being drawn fast, indicating subdued demand.
Meanwhile, SGX TSI Iron Ore CFR China (62% Fe Fines) Index Futures closed at 0.37% down at $94.20. Though traded volume remained almost steady, prices have corrected since May last week.
Indian scenario:
Almost all exports from India go to China, making its pricing environment linked extentively to Chinese demand. Moreover, China as the largest consumer of iron ore, determines the pricing in several ways.
Against this backdrop, Indian iron prices are unlikely to recover in coming weeks. Trends of this tepid demand scenario has already played out as NMDC has reduced prices effective June 3, 2025.
Sources in the know said demand for exports has not revived fully with a lot of price negotiations happening between parties before signing of contract.
